Earnings Sneek Peak: Alcoa (AA)

One of the biggest names in aluminum production and exploration, Pittsburgh based Alcoa (AA) is one of the best known firms in the commodity world. The company operates in over thirty countries and is only rivaled in size by international firms Rio Tinto (RIO) and Rusal. Falling prey to a struggling industrial sector, Alcoa and many other mining corporations have been feeling the pressure since the recession began in late 2008. With their first quarter earnings report coming up on Monday, all eyes will be fixated on the materials giant [for more metals news and analysis subscribe to our free newsletter].

As not only one of the largest mining firms in the U.S., but also the one of the first major firms to report their earnings each quarter, Alcoa often sets the tone for industry expectations. The company is involved in all facets of aluminum production, from mining to refining and selling the metal to companies around the world, allowing it to become a staple of the aluminum world. Currently, the stock trades nearly 23 million times per day and has a market cap of just under $9 billion.

Alcoa Earnings Preview

Investors may not be feeling too optimistic as shares of AA have already dropped 8% in price since January to trade at a 2013 low of $8.22. The company has been powerless to fight against weak aluminum prices brought out in large part by a very large increase in aluminum production in China. Three months out analysts estimated earnings per share of $0.13 at the end of the first quarter, but drawing closer to Monday this number has dropped multiple times to finally land at just EPS of $0.10 [see also Industrial Metals Lose Their Luster].

It should be noted, that while The Street’s expectations are relatively lackluster, AA has either met or surpassed all of the last four earnings marks. Investors will want to keep a close eye on this stock throughout the Friday and Monday sessions, as it will likely be active ahead of Monday’s after-the-bell report. Depending on the nature of the release, look for AA to gap at Tuesday’s open.

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